28% GST likely on casinos, online gaming

The GST Council in its meeting this week is likely to vet a proposal of the panel of state finance ministers on levying 28 percent GST on online gaming, casinos, and horse racing, sources said. The Group of Ministers, headed by Meghalaya Chief Minister Conrad Sangma, has recommended that online gaming should be taxed at the full value of the consideration, including the contest entry fee paid by the player on participating in the game. In the case of racecourses, the GoM has suggested that GST be levied on the full value of bets pooled in the totalisators and placed with the bookmakers. In casinos, GoM recommended that the tax would be levied on the full face value of the chips/coins purchased from the casino by a player. No further GST would apply to the value of bets placed in each round of betting, including those placed with winnings in previous rounds. Also, the GoM suggested that 28 percent Goods and Services Tax be levied on entry/access fees into casinos, which compulsorily include foods/beverages, etc. However, optional supplies, made independently of the entry tickets, would be taxed at the rate applicable on such supplies, sources added. Currently, services of casinos, horse racing, and online gaming attract 18 percent GST. The GoM would decide on the method of valuing the services.